Norfolk Southern Railway

(Redirected from Norfolk Southern)

The Norfolk Southern Railway (reporting mark NS) is a Class I freight railroad operating in the Eastern United States. Headquartered in Atlanta, the company was formed in 1982 with the merger of the Norfolk and Western Railway and Southern Railway.[4] The company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia,[5] and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Kansas City.[6][7] Norfolk Southern Railway is the leading subsidiary of the Norfolk Southern Corporation.

Norfolk Southern Railway
Map of Norfolk Southern Railway with trackage rights in purple
NS 9865, a GE Dash 9-40CW, leads an intermodal train in Wauseon, Ohio
Overview
HeadquartersAtlanta, Georgia, U.S.
Reporting markNS
LocaleNortheastern, Southern and Midwestern United States
Dates of operation1982–present
PredecessorsNorfolk and Western Railway
Southern Railway
Technical
Track gauge4 ft 8+12 in (1,435 mm) standard gauge
Length19,335 miles (31,117 km)
Norfolk Southern Corporation
Company typePublic
IndustryTransportation
FoundedJuly 23, 1980 (1980-07-23) in Norfolk, Virginia, U.S.
HeadquartersAtlanta, Georgia, U.S.
Key people
Mark R. George (President and CEO)
RevenueDecrease US$12.16 billion (2023)[1]
Decrease US$2.851 billion (2023)[1]
Decrease US$1.827 billion (2023)[1]
Total assetsIncrease US$41.65 billion (2023)[1]
Total equityIncrease US$12.78 billion (2023)[1]
Number of employees
Decrease 20,000 (2023)[2]
Websitenorfolksouthern.com
Footnotes / references
[3]

Norfolk Southern is responsible for maintaining 28,400 miles (45,700 km), with the remainder being operated under trackage rights from other parties responsible for maintenance work.[8] Intermodal containers and trailers are the most common commodity type carried by NS, which have grown as the coal business has declined throughout the 21st century; coal was formerly the largest traffic source. The railway offers the largest intermodal rail network in eastern North America.[9] NS was also the pioneer of Roadrailer service. Norfolk Southern and its chief competitor, CSX Transportation, have a duopoly on the transcontinental freight rail lines in the Eastern United States.

Norfolk Southern is the namesake and leading subsidiary of the Norfolk Southern Corporation, based in Atlanta, Georgia;[10] it was headquartered in Norfolk, Virginia, until 2021.[11] Norfolk Southern Corporation was incorporated in Virginia on July 23, 1980, and is publicly traded on the New York Stock Exchange (NYSE) under the symbol NSC.[12] The primary business function of Norfolk Southern Corporation is the rail transportation of raw materials, intermediate products, and finished goods[13] across the Southeast, East, and Midwest United States.[14] The corporation further facilitates transport to the remainder of the United States through interchange with other rail carriers while also serving overseas transport needs by serving several Atlantic and Gulf Coast ports. As of February 2024, Norfolk Southern Corporation's total public stock value is $57.869. As of January 2024, Norfolk Southern's operating revenue is $3.07 billion.[15][16]

History

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Norfolk Southern is one of the five biggest railroad operators in North America by its revenue. It operates in 22 states and in Washington, D.C. The company's market capitalization stood at nearly $58 billion in February 2024.[17]

Corporate history

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Predecessors

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Norfolk Southern's predecessor railroads date to the early 19th century.

The South Carolina Canal & Rail Road was the SOU's earliest predecessor line. Chartered in 1827, the South Carolina Canal & Rail Road Company became the first to offer regularly scheduled passenger train service with the inaugural run of the Best Friend of Charleston in 1830.[18] Another early predecessor, the Richmond & Danville Railroad (R&D), was formed in 1847 and expanded into a large system after the American Civil War under Algernon S. Buford. The R&D ultimately fell on hard times, and in 1894, it became a major portion of the new Southern Railway (SOU). Financier J. P. Morgan selected veteran railroader Samuel Spencer as president. Profitable and innovative, Southern became, in 1953, the first major U.S. railroad to completely switch to diesel-electric locomotives from steam.

The City Point Railroad, established in 1838, was a 9-mile (14 km) railroad in Virginia that started south of Richmond—specifically, City Point on the navigable portion of the James River, now part of the independent city of Hopewell—and ran to Petersburg. It was acquired by the South Side Railroad in 1854. After the Civil War, it became part of the Atlantic, Mississippi & Ohio Railroad (AM&O), a trunk line across Virginia's southern tier formed by mergers in 1870 by William Mahone, who had built the Norfolk & Petersburg Railroad in the 1850s. The AM&O was the oldest portion of the Norfolk & Western (N&W) when it was formed in 1881, under E. W. Clark & Co., ownership with a keen interest and financial investments in the coal fields of Western Virginia and West Virginia. In the second half of the 20th century, the N&W acquired the Virginian Railway (1959), the Wabash Railway, and the Nickel Plate Road, among others.[19]

Formation

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In January 1979, major eastern United States railroad holding companies Chessie System and Seaboard System Railroad applied to the Interstate Commerce Commission for approval to merge and create CSX Corporation. In response, the Southern Railway (SOU, formed in 1894) and Norfolk & Western Railway (N&W, formed in 1881) quickly decided a merger of their own would be advantageous. The two companies announced their merger plans in April 1979; the CSX merger went ahead in 1980. In 1982, SOU and N&W concluded their own merger, creating Norfolk Southern Corporation.[20] In 1990, Norfolk Southern Corporation transferred all the common stock of N&W to Southern, and Southern's name was changed to Norfolk Southern Railway Company. In 1998, Norfolk and Western was merged into Norfolk Southern Railway, forming one, united, railroad.[21] Headquarters for the new NS were established in Norfolk, Virginia.[11] The company suffered a slight embarrassment when the marble headpiece at the building's entrance was unveiled, which read "Norfork Southern Railway". A new headpiece replaced the erroneous one several weeks later.[22]

Conrail purchase

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Norfolk Southern Railway trains on Horseshoe Curve, formerly part of Conrail's network

The system grew with the acquisition of over half of Conrail. The Consolidated Rail Corporation (Conrail) was an 11,000-mile (18,000 km) system formed in 1976 from the Penn Central Railroad (1968–1976),[19] and five other ailing northeastern railroads that were conveyed into it, forming a government-financed corporation. Conrail was perhaps the most controversial conglomerate in corporate history.[citation needed] Penn Central itself was created by merging three venerable rivals—the Pennsylvania Railroad (PRR, 1846), the New York Central Railroad (NYC, 1831), and the New York, New Haven & Hartford Railroad (NYNH&H, 1872)—as well as some smaller competitors. In 1980, Conrail became profitable after the Staggers Act largely deregulated the U.S. railroad industry.

When the U.S. government offered up Conrail for sale in 1983, Norfolk Southern was one of the 18 bidders to make offers. The government decided the NS offer was the best choice, and by 1985 had begun planning to sell Conrail to NS. Extensive opposition from competitors, particularly CSX, persuaded the government that selling Conrail to one railroad would create too powerful of a company. As an alternative, Conrail leader (and former Southern Railway CEO) L. Stanley Crane proposed an initial public offering to privatize the company, which was ultimately carried out in 1987 instead of a sale to one operator.[23]

NS again expressed interest in a Conrail purchase in 1994, but this time Conrail publicly stated it had no interest in selling to another company. The company began to reconsider this stance after several expansion initiatives failed. After confidential discussions, Conrail and CSX made a surprise announcement in October 1996 that CSX would acquire the company. Norfolk Southern was unwilling to let a CSX purchase go through, beginning a bidding war between the two competitors that was only resolved in January 1997 when an agreement was reached to split Conrail.[24]

NS and CSX applied to the Surface Transportation Board (STB) for authority to purchase, divide, and operate the assets of Conrail in June 1997. On June 8, 1998, the STB approved the NS-CSX application, effective August 22, 1998.[25] NS acquired 58% of Conrail assets, including about 7,200 miles (11,600 km) of track, most of which was part of the former Pennsylvania Railroad. CSX got the remaining 42%. NS began operating its trains on its portion of the former Conrail network on June 1, 1999, closing out the 1990s merger era.

Pennsylvania Lines LLC

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logo

Pennsylvania Lines LLC was a limited liability company was formed in 1998 to own Conrail lines assigned to Norfolk Southern in the split of Conrail; operations were switched over on June 1, 1999. The company is named after the old Pennsylvania Railroad, whose old main line was a line of the new company. In November, 2003, the Surface Transportation Board approved a plan allowing Norfolk Southern to fully absorb Pennsylvania Lines LLC,[26] which was done on August 27, 2004.

21st century

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In 2016, a proposed merger that had been months in the pipeline with Canadian Pacific was abandoned abruptly.[27]

According to NS's 2022 Annual Report to Investors, at the end of 2022, NS had 19,300 employees, 3,190 locomotives, and 40,470 freight cars.[2] At the end of 2022, the transport of coal made up 14% of the total operating revenue of NS, general merchandise (automotive, chemicals, metals, construction materials, agriculture commodities, consumer products, paper, clay, forest products, and more) made up 57%, and intermodal made up 29% of the total.

On December 12, 2018, Norfolk Southern announced that it would be leaving its hometown of Norfolk, Virginia after 38 years and relocating its headquarters to Atlanta, Georgia.[10] The new Atlanta headquarters building opened on November 10, 2021.[28]

In June 2023, Norfolk Southern became the first major North American freight railroad with deals to provide all its union workers sick time.[29]

In July 2023, Norfolk Southern announced plans to purchase the Cincinnati Southern Railway for $1.6 billion. Cincinnati voters approved the sale in the November 2023 election. Norfolk Southern will pay the city $1.6 billion and Cincinnati will establish a trust fund with the money, with earned interest going back to Cincinnati to maintain infrastructure.[30][31]

In 2024, the company nominated a slate of new board members. In a letter to shareholders, NS asked them to vote for its slate of 13 nominees at its May shareholder meeting. The company defended its choice of board members, citing the board's work to improve long-term shareholder value, hold management accountable, and improve safety and operational performance.[32] Among the 13 nominees, two of them are for new independent directors—Richard H. Anderson, former CEO of Amtrak and Delta Air Lines, and Heidi Heitkamp, a former U.S. Senator.[33] In 2023, retired Navy Admiral Philip Davidson, and Francesca DeBiase, former executive at McDonald's Corporation, were appointed to the board.[32]

Environmental history

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In early spring of 2008, the state program manager for air quality planning in Georgia, Jimmy Johnston, had been talking to NS about voluntary upgrades to reduce the company's environmental impact. NS is upgrading 3,800 of its locomotives with new technology that is 73 percent more efficient than previous models. The new technology being put into the locomotives makes the ride more fuel efficient and reduces idle time.[34]

In 2009, the company introduced an experimental battery-electric switcher locomotive, NS 999. This prototype locomotive was developed by Norfolk Southern in collaboration with the United States Department of Energy, the Federal Railroad Administration and the Pennsylvania State University.[35]

Norfolk Southern reduced core greenhouse gasses by 13.5% between 2019 and 2021. For its efforts, the company achieved recognition from USA Today's America's Climate Leaders 2023 and Forbes' Net Zero Leaders 2023.[36]

In November 2022, Norfolk Southern contributed $750,000 to the Georgia Tech sustainability program for the next three years.[37][38][39][40]

In order to align itself with climate-change goals set by the Paris Agreement, NS aims to cut its scope 1 and 2 greenhouse gas emissions by 42% by 2034. NS has begun measures to lower emissions, such as modernizing more than 100 locomotives each year and equipping 93% of its active locomotive fleet, or 1550 locomotives, with energy-management technology.[41][42]

The company has made efforts to improve environmental sustainability, according to Progressive Railroading magazine. In 2007, the company established the rail industry's first chief sustainability officer and published its first sustainability report in 2008. In 2021, Norfolk Southern set a target to reduce greenhouse gas emissions intensity by 42% by 2034 and has already achieved a 6% reduction. The company is also upgrading 1,000 locomotives to enhance fuel efficiency and incorporating biofuels and renewable energy into its operations.[43]

Labor history

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Since 2019, a labor dispute between Norfolk Southern Railway and railway workers has been underway. In September 2022, the workers and companies involved tentatively agreed to a deal, but it was rejected by a majority of the union's members.[44] In late 2022, the United States Congress intervened to prevent a strike by passing the tentative deal into law.[45] Norfolk Southern was the first railroad to offer paid sick leave to all employees.[46] In May 2023, Norfolk Southern agreed to provide up to seven paid sick days per year to employees, meeting one of the workforce demands that nearly led to a nation-wide rail strike in December 2022.[47] On December 6, 2022, Norfolk Southern announced a new service and growth plan that will ensure the company maintains its train crew levels during downturns.[48]

In 2024, an investor group led an effort to bring in a new leadership team at NS. The proposal would have removed Alan Shaw as CEO and replaced seven directors on the company's board. The division of organized labor on the issue surfaced in April. Labor was divided on the issue, which led to a proxy battle ahead of an annual shareholder meeting. Unions criticized investors' plans to replace Shaw and implement an industry operating model known as Precision Scheduled Railroading, saying such a model is "unrealistic."[49] In the end, shareholders voted to keep Shaw as CEO, but voted in three new directors.[50]

Norfolk Southern Railway Police

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Norfolk Southern Railway maintains its own railroad police force, tasked with enforcing laws and investigating incidents involving the company's property.[51] The Norfolk Southern Police Department, based in Atlanta, operates across 22 states with special agents responsible for protecting employees, the public, company property, and freight. The department's Police Communications Center, also in Atlanta, functions 24/7, coordinating field operations. Officers receive state-mandated training to maintain certification, alongside additional annual training provided by the department.[52]

Critics have raised concerns about potential conflicts of interest, as these officers are employed by the railroad and may prioritize protecting corporate interests over public safety. In 2023, an accident involving a Norfolk Southern train in Georgia severely injured Charlotte Cleary, a 14-year-old girl. This case became central to growing calls for reform and increased independent oversight of railroad policing practices.[51] In November 2024, shots were fired at Norfolk Southern Railway police officers during an investigation of a burglary in Chicago. The officers were unharmed, and the suspects fled.[53]

The Norfolk Southern Police runs a program called Protect the Line that encourages citizens and employees to report suspicious activity. The Police Communications Center coordinates responses to potential threats or incidents across the railroad's 20,000 miles of track.[54]

Notable accidents

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On September 15, 2002, a Norfolk Southern train derailed in Farragut, Tennessee. The derailment resulted in the release of oleum or fuming sulfuric acid. Roughly 2,600 residents were evacuated from nearby homes for three days until hazardous materials crews were able to mitigate the scene. No fatalities or major injuries were reported as a result of the derailment, but property damage and losses were calculated at $1.02 million. Seventeen people were injured.[55]

On January 6, 2005, a derailment in Graniteville, South Carolina, resulted in a large amount of chlorine and diesel fuel being released into nearby waterways. In addition, a toxic cloud covered the city resulting in the town being evacuated. Local wildlife was killed, many of the local crops and vegetation were contaminated or killed, nine human deaths were reported, and thousands were injured.[56] The company was taken to court and fined for violating the Clean Water Act and the Federal Superfund law. NS spent a total of $26 million for the cleanup.[57]

Derailments incidents also occurred in Pennsylvania in 2018, and in East Palestine, Ohio, in 2023.

2018 Pennsylvania derailment

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A derailment happened in Pittsburgh, Pennsylvania, United States, on the afternoon of August 5, 2018, when the train was heading from New Jersey to Chicago.

2023 Ohio derailment

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The 2023 derailment in East Palestine, Ohio

On February 3, 2023, a freight train carrying vinyl chloride, butyl acrylate, ethylhexyl acrylate and ethylene glycol monobutyl ether[58] derailed along Norfolk Southern Railways Fort Wayne Line in East Palestine, Ohio, United States.[59] Emergency crews conducted a controlled burn of the spill[60] which released hydrogen chloride and phosgene into the air.[59]

In May 2023, Norfolk Southern announced compensation plans for homeowners whose homes lost value near the 2023 derailment in East Palestine, Ohio.[61] The program applies to parts of Ohio and Pennsylvania near the derailment site and applies to those with homes on the market, future listings or sold since February 3, 2023.[62]

NS has also added more trackside detectors to help spot mechanical problems like wheel-bearing temperatures following the Ohio derailment.[63] Six months after the accident, contractors removed about 25 million gallons of wastewater and 80,000 tons of contaminated soil.[64] By July 2023, NS spent $63 million to support the community, including about $18 million to reimburse families for housing, food and other expenses.[64] Within eight months of the accident, Norfolk Southern removed more than 167,000 tons of contaminated soil and more than 39 million gallons of tainted water from the site.[65] Norfolk Southern is continuing to collect 2,500 soil samples from the site to ensure all the contamination is gone.[66]

As of June 2024, Norfolk Southern contributed over $107 million in aid to East Palestine, including nearly $21 million paid out directly to residents whose lives were affected by the derailment.[67] Norfolk Southern worked on several projects in East Palestine, including renovating the historic train depot, enhancing City Lake, improving the municipal water treatment plant, renovating East Palestine City Park, and establishing a First Responder Training Center.[68]

Residents in East Palestine affected by the Norfolk Southern train derailment have the option to join a class action lawsuit to potentially receive a portion of a $600 million settlement. The agreement-in-principle of the class action lawsuit includes compensation for residents and businesses in East Palestine and surrounding communities for personal injuries resulting from exposure to chemicals. Accepting payment from the rail company now would prevent homeowners from pursuing future litigations against Norfolk Southern.[69] On September 25, 2024, the $600 million settlement was given final approval by U.S. District Judge Benita Y. Pearson, in the United States District Court for the Northern District of Ohio.[70] There are 464,000 potential class members, and only 1 percent opted out of the settlement, while 86 objected.[70] Over 90 percent of East Palestine households have reportedly filed claims to access the settlement.[70] Approximately 27 percent of the settlement fund, or around $162 million, will be set aside for attorneys' fees to be divided between over 35 law firms that participated in the lawsuit.[70]

The U.S. Department of Justice and the Environmental Protection Agency (EPA) reached a settlement with Norfolk Southern Railway Company in May 2024 to address the derailment. The settlement includes over $310 million for cleanup efforts, penalties, and future costs associated with the environmental impact.[71][72] However, Norfolk Southern officials estimate that the company will end up paying over $1 billion to address contamination in East Palestine.[73]

NTSB investigation

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The National Transportation Safety Board found that Norfolk Southern mishandled its response to the derailment. According to the NTSB, Norfolk Southern obstructed the government's investigation into the derailment by withholding important safety information from first responders and local authorities.[74] NTSB chair Jennifer Homendy accused the company of threatening the board and obstructing the investigation by delaying or failing to provide critical information.[75] Homendy described Norfolk Southern's behavior as “unconscionable” and “reprehensible,” citing the company's attempt to manufacture evidence by hiring a private firm to conduct tests outside of the NTSB process.[75]

The NTSB issued a report in June 2024 on its investigation into the derailment. NTSB's investigators found that Norfolk Southern gave incomplete and misleading information to the local incident commander following the derailment and chemical spill. The incident commander, based on this information, conducted a vent and burn of the toxic chemical vinyl chloride monomer from the tank car. An NTSB investigator and the Federal Railroad Administration found that the vent and burn was unnecessary. The chemical burn released toxic contaminants into the air, soil, and water in East Palestine, according to the science director at the Science and Environmental Health Network, Todd Schettler.[76] The NTSB concluded that this decision was based on misinterpreted evidence, contributing to unnecessary environmental harm.[77]

Safety

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Norfolk Southern has made efforts to improve safety, launching several initiatives and programs to protect both their employees and local communities. In 2015, Norfolk Southern introduced the Operation Awareness & Response program, which trains around 5,000 first responders annually, equipping them with the knowledge to handle rail-related emergencies effectively.[78][79]

In early 2023, Norfolk Southern rolled out a comprehensive six-point safety plan which included installing approximately 200 additional hot bearing detectors across its rail network. These detectors are essential in identifying potential issues before they become serious problems, thereby enhancing the overall safety of the rail operations.[80]

To address the safety of transporting hazardous materials, in May 2023, Norfolk Southern enlisted the help of Atkins Nuclear Secured (ANS). The team, led by a former chief of the U.S. Navy's Nuclear Propulsion program and comprising several ex-Navy admirals, was tasked with evaluating and improving the railroad's safety protocols.[81][82][83]

That same month, CEO Alan Shaw, along with 12 union leaders, took a united stand on safety by issuing a joint letter. This letter emphasized their commitment to improving rail safety for both employees and the communities within Norfolk Southern's service areas.[84]

By September 2023, Norfolk Southern had begun constructing a state-of-the-art railroad safety training center in East Palestine. With a budget of $20 million, this facility is designed to train first responders from Ohio, Pennsylvania, and surrounding areas on how to handle various railroad emergencies.[85]

October 2023 saw Norfolk Southern implementing cutting-edge technology with the introduction of Digital Train Inspection Portals. The first of these portals, located between Leetonia and Columbiana, features 42 powerful lights and 38 high-definition cameras to capture detailed images of passing trains. These images are then analyzed by computers to detect any defects that might lead to derailments, marking a significant advancement in rail safety in the United States.[86]

Norfolk Southern's safety achievements in 2023 were notable. It was the only Class I railroad to significantly reduce the rate of mainline derailments, even as the industry as a whole experienced a decline in this area.[87][88][89]

In January 2024, Norfolk Southern made history by becoming the first Class I railroad to join the federal Confidential Close Call Reporting System (C3RS). This program allows employees to anonymously report near-miss incidents.[90] Later in 2024, the company instructed its employees inspect each railcar in under a minute, raising criticisms from unions and federal safety officials, who argue the policy prioritizes speed over thoroughness and jeopardizes rail safety. The Federal Railroad Administration (FRA) said it would closely monitor the policy's impact.[91]

In July 2024, Norfolk Southern agreed to implement a series of safety recommendations made by the National Transportation Safety Board following a February 2023 train derailment in East Palestine. The NTSB recommendations include improving rail defect detection systems, modernize nationwide tank car fleets, and getting real-time rail safety information to emergency responders.[92]

FRA safety assessment

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In August 2023, the Federal Railroad Administration (FRA) published a report on Norfolk Southern's safety culture, which it rated at an "involving" level of maturity—level 3 out of 5 on the Fleming Safety Culture Maturity Model. The FRA acknowledged the railroad's efforts to improve safety but noted that some practices were still aligned only with the minimum standards set by law. Norfolk Southern responded by committing to address the findings and further enhance its safety culture.[93]

The report, called the 2023 Norfolk Southern Safety Culture Assessment, identified several deficiencies in the company's safety practices, particularly regarding training, communication, and compliance. The report stated that Norfolk Southern's conductor training, especially its 13-day classroom program, was insufficient for the complexity of Class I railroad operations. On-the-job training was found to be inconsistent and poorly structured, increasing the likelihood of unsafe practices. Additionally, the company failed to comply with federal regulations concerning qualified instructor designations, further undermining the effectiveness of its safety training programs.[94]

The report also highlighted communication failures within the company, particularly between dispatchers and the Advanced Train Control desk, which led to delays in responding to critical safety alarms. Norfolk Southern's focus on meeting only minimum safety standards rather than implementing proactive improvements was another major concern. Despite previous safety audits and opportunities to address these issues, the company demonstrated slow progress in rectifying critical deficiencies, leading to ongoing risks in its operations. These shortcomings contributed to an overall weak safety culture at the railroad.[94]

However, the report did include notes about areas that the railroad is doing well. For example, the report acknowledged Norfolk Southern's partnership with Atkins Nuclear Secured to assess and enhance its safety culture, with the FRA recognizing the partnership as a constructive effort aimed at addressing the company's safety challenges. The report commended Norfolk Southern for taking corrective actions based on the assessment's findings.[94]

Leadership history

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  • John P. Fishwick Sr.[95]
    • CEO and President of Norfolk Western Railroad: 1970–1980
    • CEO and President of Norfolk Southern Railroad: 1980–1981
  • Robert B. Claytor
    • CEO: 1982–1987
  • Arnold B. McKinnon
    • CEO and President: 1987–1992
  • David R. Goode:
    • CEO: 1992–2005
    • President: 1991–2004
  • Charles "Wick" Moorman:
    • CEO: 2005–2015
    • President: 2004–2013
  • James A. Squires:[96]
    • President: June 1, 2013 – December 2021
    • CEO: June 1, 2015 – May 1, 2022
  • Alan H. Shaw[97]
    • President: December 2021 – September 11, 2024
    • CEO: May 1, 2022 – September 11, 2024
  • Mark R. George
    • President and CEO: September 11, 2024 – present[98][99]

Alan Shaw

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Alan Shaw, who became CEO in May 2022, was with Norfolk Southern from 1994 to September 11, 2024,[100][101] holding various positions within the company. Shaw holds a Bachelor of Science and an MBA from Virginia Tech, and he completed the General Management Program at Harvard Business School.[102] In December 2022, he introduced a new strategy for Norfolk Southern that focuses on enhancing service reliability and investing in resources like locomotives, technology, and employee training.[103][104][105] After a train derailment in 2023 in East Palestine, Ohio, Shaw visited residents, assuring them of NS's commitment to assisting with the cleanup and recovery efforts after the derailment.[106] In 2023, Shaw received the Railway Innovator Award, an industry given by Progressive Railroading and RailTrends.[107] Shaw was terminated because of an inappropriate consensual relationship with the company's Chief Legal Officer.[108]

2024 executive hires

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Norfolk Southern made several key executive appointments announced in August 2024. John Orr, the chief operating officer, named Tim Livingston as senior vice president of transportation and network operations. Livingston brings Rodney Moore, vice president of transportation for the northern region, and Dewayne Swindall, vice president of transportation for the southern region. Moore has been with Norfolk Southern for 20 years, while Swindall previously served as head of the Indiana Rail Road.[109]

Additionally, Anil Bhatt was appointed as executive vice president and chief information and digital officer. Bhatt, who previously served as chief information officer at Elevance Health, will focus on advancing Norfolk Southern's technological capabilities and operational efficiency. He will work with chief marketing officer Ed Elkins and chief operating officer John Orr to implement technology solutions in the areas of safety, productivity, and customer service.[110][111]

Current trackage

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Regional divisions

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On March 15, 2016, Norfolk Southern consolidated its three operation regions into two: northern and southern regions. The northern region includes Harrisburg, Pittsburgh, Dearborn, Lake, and Illinois divisions. The southern region includes Piedmont, Alabama, Georgia, Central, and Pocahontas divisions.[112]

The two merged regions will support approximately 1,000 daily crew starts for long-haul train operations. The consolidation was part of Norfolk Southern's five-year strategic plan to enhance operating efficiencies while reducing costs.[113]

Premier Corridor

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Two NS trains heading east along the Pittsburgh Line

The Premier Corridor is Norfolk Southern's principal east–west line from the East Coast to the Midwest.[114] An average day sees 100 trains of all types.[114] The corridor's main (New York to Chicago) segment consists of the Lehigh Line, Reading Line, Harrisburg Line, Pittsburgh Line, Fort Wayne Line, Cleveland Line, and Chicago Line.[114]

Chicago Bypass

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Meridian Speedway

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Pan Am Southern/Patriot Corridor

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On May 15, 2008, NS announced that it would join with Pan Am Railways to create the "Patriot Corridor", an improved rail route between Albany, New York, and the greater Boston, Massachusetts, area.[115][116][117] On March 12, 2009, STB approved the deal.[118] Each of the two companies now owns 50% of a new company known as Pan Am Southern (PAS). PAR's trackage between Ayer, Massachusetts, and Mechanicville, New York, was transferred to PAS and continues to be operated and maintained by PAR's Springfield Terminal Railway Company subsidiary. NS transferred to PAS cash and property valued at $140 million. The railroad operates 22K and 23K from Mechanicville, NY to Ayer, MA. Due to the unique ACSES PTC system used on Keolis-operated trackage, which the 22K and 23K runs on between Wachusett and Ayer, only specific SD60E locomotives equipped with ACSES can lead trains.

In 2021, CSX announced its intention to purchase Pan Am Railways.[119] Norfolk Southern protested, arguing that CSX, which would own 50% of Pan Am Southern, would be able to block Norfolk Southern out of the northeast. As part of the Surface Transportation Board merger requirements, CSX will give NS limited trackage rights to run intermodal trains, and Pan Am Southern will be operated by the Pittsburg and Shawmut Railroad, under the name Berkshire and Eastern Railroad.[120]

Yards and facilities

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Norfolk Southern yard in Croxton, New Jersey, near Jersey City, New Jersey

Norfolk Southern operates 35,600 miles (57,300 kilometers) of track primarily in the eastern United States, covering 22 states.[121][122] It maintains four major hubs in Harrisburg, Pennsylvania, Chicago, and Atlanta, along with various facilities like classification yards and intermodal yards.[123] The company also holds trackage rights that allow it to run its trains on other railroads' tracks, extending its operations to places like Dallas, Texas, Waterville, Maine, and Miami, Florida, while also participating in locomotive leasing and sharing with other Class I railroads.

General freight classification yards

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Enola Yard, PA
 
Inman Yard, GA

Intermodal classification yards

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[124]

Locomotive shops

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Juniata Shops at Altoona Works

NS also shares interest with CSX in the Oak Island Yard, managed by Conrail Shared Assets Operations in Newark, New Jersey.

Steam excursion programs

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Nickel Plate Road 765 in Altoona, Pennsylvania, during an excursion on Norfolk Southern

After the 1982 merger, NS President Robert Claytor retained the Southern Railway's steam excursion program begun in the 1960s by his brother, SOU president W. Graham Claytor. NS initially used former Chesapeake and Ohio 2716, which had been modified and decorated as a Southern locomotive for the steam program; however, the engine developed mechanical problems in its firebox after less than a year in excursion service and was replaced by Nickel Plate Road 765.[126]

Merging with the Norfolk & Western Railway prompted the steam program to acquire and overhaul Norfolk & Western 611 in 1982, and Norfolk & Western 1218 in 1987.[126] These two locomotives and 765 joined the steam program veterans – Southern Railway 4501, Savannah and Atlanta Railway 750, Nickel Plate 587, Louisville & Nashville 152, Atlanta and West Point 290, Tennessee Valley Railroad 610, and Frisco 1522 – for an extensive series of excursions throughout the late 1980s and early 1990s.[126] Norfolk Southern's management under David R. Goode was forced to end the program in late 1994, citing safety concerns, rising insurance costs, the expense of maintaining the steam locomotives and decreasing rail network availability due to a surge in freight traffic.[127]

In June 2010, Norfolk Southern CEO Wick Moorman announced that NS would run excursions with Southern Railway 4501, Southern Railway 630, and U.S. Army 610 with their new 21st Century Steam program.[128]

The program began in 2011 with excursions in the south powered by 630 and in the north by 765. On February 22, 2013, the Virginia Museum of Transportation (611's owner) formed a campaign called "Fire Up 611!" to conduct a feasibility study with the goal of returning the 611 to active service and have it join the program.[129] The locomotive was removed from her static display from the Virginia Museum of Transportation to the North Carolina Transportation Museum in 2014 to be overhauled. That same year, TVRM completed their restoration of Southern Railway 4501 – joining the 21st Century Steam program for the 2015 season and pulling excursions in Tennessee, Virginia, and Georgia. The restoration of 611 was completed in May 2015 and celebrated with a run to Roanoke, Virginia, where it was originally built. The 611 pulled several excursions in Virginia and was featured in special events at the North Carolina Transportation Museum. In December 2015, Norfolk Southern had concluded their program; however, the 611 continued to run various excursions, hosted by the Virginia Museum of Transportation and the North Carolina Transportation Museum instead of Norfolk Southern across the NS system in Virginia and North Carolina until 2018.[130] Norfolk Southern currently limits the steam locomotives up to 40 mph (64 km/h) on their system.

Rolling stock

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2018 NS Rolling Stock[131]
Type Owned Leased Total Total Capacity (Tons)
Gondola 24,768 4,048 28,816 3,205,609
Hopper 11,001 0 11,001 1,244,016
Covered hopper 8,323 85 8,408 932,767
Boxcar 7,125 1,251 8,376 726,694
Flatcar 1,685 1,608 3,293 312,537
Other 1,597 4 1,601 73,203
Total 54,499 6,996 61,495 6,494,826

Reporting marks

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Although it has been widely known as simply "Norfolk Southern" since 1982,[4] the corporate structure and reporting marks are more complicated. In 1999, when most of Conrail's former PRR trackage was sold to the Norfolk Southern Railway,[132] the Pennsylvania Railway Lines was created and PRR reporting marks used on the former Conrail motive power and rolling stock.

See also

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Improvement projects

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References

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  1. ^ a b c d e "Norfolk Southern Corporation Common Stock (NSC) Financials". Nasdaq. Retrieved May 12, 2023.
  2. ^ a b "Annual Reports". Norfolk Southern.
  3. ^ Form 10-K (Report). February 4, 2021.
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  9. ^ "Untitled Document". www.sec.gov.
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Bibliography

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  • Borkowski, Richard (2008). Norfolk Southern Railway. MBI Railroad Color History (1st ed.). Voyageur Press. ISBN 978-0-7603-3249-8.
  • Plant, Jeremy F.; Plant, Brian D. (2013). Norfolk Southern Heritage in Color (1st ed.). Morning Sun Books. ISBN 978-1582484044.
  • Solomon, Brian (2005). CSX. Saint Paul, MN: MBI Publishing Co. ISBN 978-0-7603-1796-9. OCLC 57641636.
  • Wrinn, Jim (2000). Steam's Camelot: Southern and Norfolk Southern Excursions in Color (1st ed.). TLC Publishing. ISBN 1-883089-56-5.
  • Surface Transportation Board, Docket FD_33388_0, CSX Corporation and CSX Transportation, Inc., Norfolk Southern Corporation and Norfolk Southern Railway Company--control and operating leases/agreements--Conrail Inc. and Consolidated Rail Corporation, July 23, 1998
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  • Official website  
  • Norfolk Southern system map Archived 2018-09-26 at the Wayback Machine
  • Business data for Norfolk Southern Corporation: